fredazcpa

Arizona starts at Federal AGI and makes add backs and subtractions, their is no add back or adjustment for the cancelled debt.  Arizona taxes all residents income regardless of where earned, then their may or may not be a credit between the states, if the income is taxed in both states.  With CA, it is CA that gives the credit if my memory serves me right.  hope this helps.

If there was two changes to the system that would help, but congress is not going to do,  First instead of filling W2 with Social security first, file with IRS, or send to both places, and second hold all refunds until at least the W2's are in the system , and any EIC held until it could be checked out, and yes that is three

in AZ they(husband and wife) are treated as one, unless they elect out by filling a partnership return, or making the elections to a S or C

agreed but

Does anyone know the filing reqiements for Candian's when they moved out of Canda, they sold there business and property there, the still hold Candain passports, but all there income is from US sources.  I know they will need to file either a 1040 or 1040NR for the US income, but not sure is the sale of the Candian business and property sale is reported to US as they are full time residence in US

Need some opinion

Facts, I did a 2013 return, client (now ex) he sold rental house and I missed that he was eligible for Sec 121 exclusion, the prorate.

I found this out via email, when he sent me an email, that they had gone to another prepare and they have amended  returns filed (Federal and State) and are claiming the refunds

My policy has always been, if I make an error, I will fix the error, cover penalties  as need and then the next return is on me, so far there only has been maybe half a dozen over the last 30 years that I have had to fix. 

Also when I review a new clients returns and find an error, I tell the client about the error and tell them to speak with the person who made the error, because most of the prepares that I talk with around here will fix the problem as I do. And most of the time the client will do so and then have me carry on from there, doing the current year.   But if the client ask me to fix the return, then of course I charge for the work.

 The only problem that may come up is if there is tax due, in the State of Arizona the CPA eitics says I must fix or have proof that is fix, if not I must disengage (which has happen)

The ex client is asking for a refund of the years fees, which I have no problem with, but he is asking also for the cost of the Amended return.  In light of my policy I do not feel that is due him.

the ex client is the son of a client that I have worked with for over 15 years.

You thoughts on this is appreciated if you have time

thank you

it is call the tax season 10 if I am lucky

I have a client like this. The reason they file MFS is she is able to have all her Teacher Student loans reduced and eventually forgiven by filing MFS. The husband always ends up owing so I have to actually prepare 3 returns MFJ, MFS for each showing how the wife claims the kids and receives all the credit, very little to itemize, State Tax WH, No credit for Student Loan interest or Child Care, still receives a refund.  Husband always ends up paying and claiming installment plan, he receives all the normal itemized deductions (They are all in his name).  Still works better than MFJ by a couple hundred.  But, the time it takes to prepare the 3 returns takes forever. Besides the MFJ vs MFS comparison in ATX does not show the State side which can be significant. Then they complain about a $150 tax return fee. Grrr.

way to cheap, I do one just like that and it is at 3 times that and this is a community property state, takes 3 to 4 hours to just get it in the software

Client:  Nothing has changed so it is the same.

changes found:

started a side business

broker sold stock to fund the start up

business is profitable (consulting)

and oh by the way, we had twins

and nothing has changed

 will the fees be the same as last year?

Me first we file an extenson you are bring this to me on the 10th and I have about 20 infront of you

and no the cost will be at a min. 3 times as last year

silence on phone

I think I will call store front

Me Goodbye, (see you next year to Amend this year and file 2015 and lets see about 5 times the cost)

It will be reported in the year the distribution actually takes place, in your client's case it is 2015, so she won't receive a 1099R until sometime early next year.  I guess I don't understand why the trustee thinks that the in-kind distribution can be made retroactively to remedy missing the 4/1 deadline.  I'm assuming that last year was the year your client turned 70 1/2 and she was using that period up until April 1st of 2015 to take the distribution that relates to 2014. If that is the case, please remember that she also must also take a distribution for 2015 before the end of this year

Yes her 70 1/2 was Sept 2014, which she had until yesterday

without a 1099R nothing can be done and she will need to make the two this year (2015) or if no distribution, 1099R she pays the penalty

thank you for your help

Should the trustee have sent a 1099R?

Client is telling me that their IRA trustee (who is an administrator for self-directed plans) because she missed the Date (April 1, 2015) that she should report an "In Kind" distribution. 

Any one ever heard of an In Kind from an IRA, the only think I can think of as In Kind is stock issued, or the investment changed to the persons name.

thank you

Your scenario won't work due to the household income rules and calculations. The statement below is from the IRS description of household income and whose income to include.

 

For most people, a household consists of the tax filers and their tax dependents.

 

Household income is the adjusted gross income from your tax return plus any excludible foreign earned income and tax-exempt interest you receive during the taxable year. Household income also includes the adjusted gross incomes of all of your dependents who are required to file tax returns.

that is what I was getting as well, thank you for confirming it for me

Husband is retired on SS and medicare, so he is good for health insurance .  Wife lost her job about 18 months ago, also with that her health insurnance.  Currently and all of 2014 no health insurance.  she is 10 years younger than husband.

If they file MFS, does that mean husband does not pay the penalty, his income is income is about 65K

she would file on the small unemployment that she has rec'd

thank you for your help

How did the successor trustee sell the stock, if the stock was not in the trust, then the broker should not have sold with hearing from the client, 

agree with both Old Jack and KC

We are taught that we are not given more than we can handel and this to will pass and when we get to the other side we will be stronger, hang in there prayers for you and Don

When efile first came on line, would file a return with money due, the client would get a bill before April 15th for amount due, Then it stoped I thought some made a programing change, Then this year client return was filed late Feb, has a balance due, he sent part payment and was waiting until he gets the billing to pay off, installment sale without the fees, In the last few weeks he has been working on getting some kind of Student Aid with the local univeristy, the university only wants an IRS transcrip, the school says no transcript, did you file return. I send client all the efile information DCN, date and time accepted. then this morning I get this from the client

"Called IRS -They did receive the taxes as you said

they do not process any taxes with amount due until May according to the rep I talked with so that there can be no transcript until paid in full or until May. Nothing can show up on line until it is processed. Even though we paid the majority of it. Seems like something is wrong there, but This is so like the IRS to do this to people. So I paid the balance and hopefully it will show up within 5 to 7 days

Thanks"

Is this true??

Late yesterday I found a simple return; done, printed, ready for client pickup first thing Saturday morning -- looked at it and found an item I just plain-old forgot to include. Remember thinking "Must go back and get that in there" -- and never did. So I'm re-printing it now. Sigh. My response last night? Only one sensible thing to do; catch the last hour of the local contra dance. It was fun but I sure was tired out from all the long hours and am glad I was only there for an hour!

Wednesday I had my whole schedule scrambled utterly and completely on me THREE times before 11AM. By the end of the day I was an absolute wreck. Had to duck out on a quick errand to pick something up and on the way back stopped at a local church that was having quiet prayer time all week. Spent 15 minutes in the quiet and dark, on my knees, remembering all I have to be grateful for. Did me a -world- of good.

Almost screwed up a trust return, the trutee cashed in some bonds, but did not have the EIN, so the brokerage withheld taxes, I almost sent the return out FED EX and that is the one transaction that the trustee was looking for. Dodged one there, too much work, too little time.

i spent a half hour on the phone with efile help desk, (wait time was about 20 min) had them check on a return that is due for payment on 4/10, I was concern for the same reason, not a small balance $50K, so no way to pay it then wait 6 weeks to get it back, the help desk said all was fine, when I sent the clients home, I sent them with the vouchers just incase and they are watching there bank, so by wed or thur should know. latter that day I got the renewal notice, hugh, got on the phone with suport, sales and told them was not accetable, as more of my cients are not wanting to wirte checks, were you but your SSN on the checks, they are concern with ID theft, and I do not blame them, and the direct debit option would work well, but this "reject" is very unsettleing to say the least

I to keep old copies of QB and only upgrade when a client does, that means I have a few gapps and if a new client comes along, just only work with back up copies and convert, then send back changes manueall and have then enter, usually with in a year or two new client will upgrade and then we will be on same page

Yes I wish QB would make a copy that works back maybe 3 or 4 years. I understand that intuit only supports back 3 years

I gave up worry about it, I work as long as I can, do as much as I can, If they do not like it, guess they will find someone else, I am real tired of this last min crap and they sure are not the easy ones, and the ones I owe, so I will come in april 14th, or the the one I have done in January owes $600 called them today to remind them it is still here, and my bill is not that high. If they call next week say they will come by Monday the 17th, by then its to late, I will have extended it, they can pick up the payment voucher from the table outside the door and good luck finding a post office after 5

next year, anyone after the cut off, have not figured that out yet, and extennsion will go in owe or not, or the other option would be charge a premium for being late 10 20 30 percent just fustrated this year more so than usuall. Family getting together for Easter, not this year for me, can not get more than a few hours sleep, only good thing is only a few more days left

Have a box marked extension that clients can see, here again no charge for them and I am going to have to move back the date again, this last min stuff is killing me, so are real easy, people just not getting it, others tuff stuff becasue they do not understand what they have and what it takes , Turst

So di I until this year, had it for the first time, a trust rec'd a 1099R with wiitholdings and I was looking all over, found read the instructions and they say no withholdings only estimated payments, so trust got a refund

only works with estimated taxes paid, not withholdings,